Earned Income Tax Credit

The Earned Income Credit (EIC) is a tax credit for certain people who work and have earned income below a specific amount. This credit may give you a refund even if you do not owe any tax. In order to claim this credit, you must file an income tax return and qualify by meeting certain rules.

A CREDIT CAN BE AS MUCH AS: 

• $438 for earned income or adjusted gross income (AGI) less than $12,880 and no children $15,880 if married filing jointly)
• $2,917 for earned income or AGI less than $33,995 and one qualifying child ($36,995 if married filing jointly)
• $4,824 for earned income or AGI less than $38,646 and more than one qualifying child $41,646 if married filing jointly)

• AGI must be less than the above mentioned limits
• You must have a valid social security number
• Your filing status cannot be married filing separately
• You must be a U.S. citizen or resident alien all year
• You cannot file Form 2555 or Form 2555-EZ (relating to foreign income)
• Your investment income must be $2,950 or less
• You must have earned income

• Your child must meet the relationship, age and residency tests
• Your qualifying child cannot be used by more than one person to claim the EIC
• You cannot be a qualifying child of another person

• You must be at least age 25, but under age 65
• You cannot be the dependent of another person
• You cannot be a qualifying child of another person
• You must have lived in the United States for more than half the year

QUALIFYING CHILD: 

A qualifying child is a child who is:

• Your son, daughter, adopted child (placed for legal adoption), stepchild or a descendant of any of them (for example, your grandchild) or
• Your brother, sister, stepbrother, stepsister or a descendant of any of them (for example, your niece or nephew), who you cared for as your own child or
• Your foster child (any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court).
• And the child was, at the end of the current tax year, under age 19 or under age 24 and a student or permanently and totally disabled at any time during the year, regardless of age
• And the child lived with you in the United States for more than half of the tax year.

• Wages, salaries and tips
• Gross income received as a statutory employee
• Taxable long-term disability benefits received before minimum retirement age Net earnings from self-employment
• Nontaxable combat pay election. You can elect to include nontaxable combat pay in earned income for the purpose of figuring the earned income credit.